State governments are collecting more in tax revenues than their pre-recession peak, thanks to both a booming economy and the 2017 Republican tax cuts, according to a new report.
Forty-one states are now bringing in more revenue than their pre-recession highs, according to data from the Pew Charitable Trust’s Fiscal 50 project. All told, the states collectively brought in 13 percent more revenue in the third quarter of 2018 than they did during the pre-recession peak.
Most of the nine states that have yet to rebound are energy-producing states that have seen revenues drop as global commodity prices fall.
The stretch of revenue growth is one of the strongest in recent memory, said Justin Theal, a researcher at the Pew Charitable Trusts who co-authored the report.
The run of positive news began in 2017, when taxpayers raced to get their money to state and federal governments before the tax reform overhaul took effect. – READ MORE